Handbook of Information Security Management
(Publisher: CRC Press LLC)
Author(s): Hal Tipton and Micki Krause, Consulting Editors
ISBN: 0849399475
Publication Date: 01/01/98

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## Chapter 1-2-2
When Technology and Privacy Collide

Edward H. Freeman

Data encryption refers to the methods used to prepare messages that cannot be understood without additional information. Government agencies, private individuals, civil libertarians, and the computer industry have all worked to develop methods of data encryption that will guarantee individual and societal rights.

The Clinton administration’s proposed new standards for encryption technology — the Clipper Chip — was supposed to be the answer to the individual’s concern for data security and the government’s concern for law enforcement. Law-abiding citizens would have access to the encryption they need and the criminal element would be unable to use encryption to hide their illicit activity.

CRYPTOGRAPHY AND SECRET MESSAGES

Cryptography is the science of secure and secret communications. This security allows the sender to transform information into a coded message by using a secret key, a piece of information known only to the sender and the authorized receiver. The authorized receiver can decode the cipher to recover hidden information. If unauthorized individuals somehow receive the coded message, they should be unable to decode it without knowledge of the key.

The first recorded use of cryptography for correspondence was the Skytale created by the Spartans 2,500 years ago. The Skytale consisted of a staff of wood around which a strip of papyrus was tightly wrapped. The secret message was written on the parchment down the length of the staff. The parchment was then unwound and sent on its way. The disconnected letters made no sense unless the parchment was rewrapped around a staff of wood that was the same size as the first staff.

Methods of encoding and decoding messages have always been a factor in wartime strategies. The American effort that cracked Japanese ciphers during World War II played a major role in Allied strategy. At the end of the war, cryptography and issues of privacy remained largely a matter of government interest that were pursued by organizations such as the National Security Agency, which routinely monitors foreign communications.

Today, data bases contain extensive information about every individual’s finances, health history, and purchasing habits. These data are routinely transferred or made accessible by telephone networks, often using an inexpensive personal computer and modem.

The government and private organizations realize — and individuals expect — certain standards to be met to maintain personal privacy. For example:

  • Stored data should only be available to those individuals, organizations, and government agencies that have a need to know that information. Such information should not be available to others (e.g., the customer’s employer) without the permission of the concerned individual.
  • When organizations make decisions based on information received from a data base, the individual who is affected by such decisions should have the right to examine the data base and correct or amend any information that is incorrect or misleading. The misuse of information can threaten an individual’s employment, insurance, and credit. If the facts of a previous transaction are in dispute, individuals should be able to explain their side of the dispute.
  • Under strict constitutional and judicial guidelines and constraints, government agencies should have the right to collect information secretly as part of criminal investigations.

EXISTING LEGISLATION

The Privacy Act of 1974

The Privacy Act of 1974 addressed some of these issues, particularly as they relate to government and financial activities. Congress adopted the Privacy Act to provide safeguards for an individual against an invasion of privacy. Under the Privacy Act, individuals decide which records kept by a federal agency or bureau are important to them. They can insist that these data be used only for the purposes for which the information was collected. Individuals have the right to see the information and to get copies of it. They may correct mistakes or add important details when necessary.

Federal agencies must keep the information organized so it is readily available. They must try to keep it accurate and up-to-date, using it only for lawful purposes. If an individual’s rights are infringed upon under the Act, that person can bring suit in a federal district court for damages and obtain a court order directing the agency to obey the law.

The Fair Credit Reporting Act of 1970

The Fair Credit Reporting Act of 1970 requires consumer reporting and credit agencies to disclose information in their files to affected consumers. Consumers have the right to challenge any information that may appear in their files. Upon written request from the consumer, the agency must investigate the completeness or accuracy of any item contained in that individual’s files. The agency must then either remove the information or allow the consumer to file a brief statement setting forth the nature of the dispute.

Researchers are continuing to develop sophisticated methods to protect personal data and communications from unlawful interception. In particular, the development of electronic funds transfer systems, where billions of dollars are transferred electronically, has emphasized the need to keep computerized communications accurate and confidential.

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